precedent has a value, termed net benefit. The rule that the court is proposing
to adopt also has a net benefit. Rationally, the court should not change a
precedent from one rule to another unless the new rule possesses a higher net
benefit than the old rule.
However, there are various cost involved in changing from one rule to another,
these being termed changeover costs. Consequently, it is not enough just that
the new rule possesses a higher net benefit than the old rule. The difference
between the two must be greater than the changeover costs. This has to occur
for a net social gain to accrue in changing the precedent from one rule to
another.
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Christopher Enright Legal Reasoning Chapter 23 Precedent
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